Business Case Study Analysis Essay Example
Customers have unique sets of resources and needs based on the level of service quality and cost. First, Robert should consider the cost of food versus quality and how customers will perceive the difference. This is because Frank has been offering comfort, reasonable barbecue prices and simple food to customers who have demonstrated loyalty to the business. Reasonable sauce prices seem to increase values even if weighted against low benefits. Secondly, Robert should consider providing top quality food and higher level of services which exceeds high perceived costs to provide high benefits to customers. This has been realized through ambience, presentation and food quality. Customers want simple quality food and also simplified décor. Apart from treating customers with exceptional service, Robert should increase product offerings that are consistently of high quality in the minds of their customers.
Meanwhile, Frank’s All-American BarBeQue derives image benefits from the four style of barbecue and the awards obtained from the national and regional barbecue cook-offs. Customers have personal benefits such as multi-purpose parking lot and great time eating. On services benefits, customers feel invited by the simplified décor and high quality services. Product benefits are exemplary as customers derive higher benefits from self-styled barbecues and sauces. Regarding perceived costs, customers deem Frank’s restaurant as offering great quality food at reasonable prices. In addition, the eatery customer feels that they are spending less energy, time and monetary expenses while visiting the restaurant to dine out. As such, Frank’s All-American BarBeQue has higher customer perceived value because it offers higher total customer benefits compared to total customer costs.
Robert intends to expand high father’s business from local to regional level within Rhodes Island and beyond. To start with, finding a larger location in Fairfield will target new customers who desire good food and larger eating space. However, it demands huge financial or monetary costs to meet such a project. Secondly, adding a takeout option will be a great opportunity to serve existing customers who are busy and may want to spend less time eating. These customers will incur less time and energy costs. However, customers may have high perceived psychological costs. Thirdly, opening more restaurants in the surrounding communities will offer more personalized and image benefits to Frank’s All-American BarBeQue. The restaurant will be well positioned to reduce the monetary and time costs of customers who come from far flung areas.
Apart from having a strategic impact, the customers will have to be guaranteed of consistent and reasonable prices of barbecue and sauces. Another option is to incorporate web marketing concepts to the existing marketing plan. This will create a professional impact on the product benefits and image to an extent that it reduces psychological costs of customers. Opening a website will provide more features and functions of the various barbecues and sauces which will create additional business impact and benefits. Lastly, expanding the sales of sauces will have a business impact by increases revenue and profits. While it increases the monetary costs of consumers, it will derive more service and product benefits by selling more sauces at reasonable prices.
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